Yes, there can be tax benefits associated with life assurance policies, such as:
- Policy proceeds: In many cases, the payout from a life assurance policy is not subject to income tax.
- Inheritance tax: If the policy is written in trust, the payout may be excluded from your estate for inheritance tax purposes, potentially reducing the tax burden on your beneficiaries.
- Tax-deferred growth: Whole-of-life policies with an investment component may allow the cash value to grow on a tax-deferred basis.
- Premiums: In some cases, premiums paid for life assurance policies may qualify for tax relief.